Technical analytics

USDJPY market technical outlook

USDJPY

Daily chart:

Currency pair is going to face a battle with resistance 108.74 at middle Bollinger band today. In case of success bulls will get the room of upper bands with the target at 109.50. However the probability of such development is minor - ADX readings promise flat.

H4-chart:

As we see 108.83 level is the place for daily middle Bollinger band as well as for upper band from H4-chart. Thus this resistance looks very strong and probability of its break is really small. Nevertheless it’s a key level, therefore after its break market will get substantial bullish dynamics.

H1-chart:

Flat dynamics of ADX indicator is present on all three time-frames, therefore the main expectation today will be trading with slight volatility inside Bollinger bands (108.65-108.83).

Expectations:

Main scenario: Flat in the 108.65-108.83 range.

Alternative scenario: Break above 108.83 will drive to the attack of psychological level 109.00.

Trading recommendations:

  1. Trading in the 108.65-108.83 range.

  2. Mid-term longs to 109.00 and 109.50.